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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - MARCH 27, 2013 12:00 AM (EDT)
A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and issuer credit ratings (ICR) of a of American Interstate Insurance Company, Silver Oak Casualty, Inc. and American Interstate Insurance Company of Texas (Austin, TX) (collectively referred to as Amerisafe), all property/casualty subsidiaries of AMERISAFE, Inc. [NASDAQ: AMSF]. Concurrently, A.M. Best has affirmed the ICR of bbb of AMERISAFE, Inc. The outlook for all ratings is stable. All companies are headquartered in DeRidder, LA, unless otherwise specified.
These rating actions reflect Amerisafes excellent capitalization, strong operating profitability (which has outperformed its peer composite over the long term) and its established market presence and experience operating in the workers compensation market for high hazard risks. Amerisafes sound operating performance has been driven by its solid underwriting results, which are derived from managements adherence to prudent practices and pricing discipline, focused loss control and safety programs and active claims management, which have resulted in favorable calendar year reserve development trends over the current five-year period.
These positive rating factors are somewhat offset by Amerisafes product concentration and pockets of adverse loss reserve development on a calendar and accident year basis, which caused earnings volatility in earlier years. The stable outlook reflects A.M. Bests expectation that operating results will remain strong, resulting in continued solid capitalization that is well supportive of Amerisafes ratings.
While the ratings for Amerisafe are stable, future positive rating actions may result from its continued strong underwriting and operating performance. However, negative rating actions could result if operating performance or risk-adjusted capitalization falls markedly short of A.M. Bests expectations.
The methodology used in determining these ratings is Bests Credit Rating Methodology, which provides a comprehensive explanation of A.M. Bests rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: Risk Management and the Rating Process for Insurance Companies; Catastrophe Analysis in A.M. Best Ratings; Rating Members of Insurance Groups; The Treatment of Terrorism Risk in the Rating Evaluation; Understanding BCAR for Property/Casualty Insurers; and Insurance Holding Company and Debt Ratings. Bests Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
A.M. Best Company is the worlds oldest and most authoritative insurance rating and information source.